Senator Bernie Sanders and a group of Democratic lawmakers are pushing to raise taxes on companies that pay their chief executives at least 50 times what their typical workers earn, saying the bill is needed to limit corporate greed.
The union-backed proposal, which could affect some of the nation’s largest companies and largest employers, would also require Treasury Department guidelines to prevent companies from avoiding taxes by using contractors instead of workers, senators said in a statement on Monday.
The bill could generate US$150 billion in revenue over 10 years, while companies could avoid tax increases by raising workers’ wages and cutting CEO pay, they added.
Walmart, Alphabet’s Google, Home Depot, JPMorgan Chase, Nike and McDonald’s could all face millions more — in some cases billions more — in taxes, the group said.
“Americans across the political spectrum are outraged by the extreme disparity between CEO and worker pay,” the group said. Sanders, an independent, usually caucuses with Democrats.
The bill of Sen. Bernie Sanders could generate US $150 billion in revenue over 10 years, while companies could avoid tax increases by raising workers’ wages and cutting CEO pay. Reuters
The bill needs 60 votes to clear the Senate, which is controlled by Democrats 51-49. It is also likely to face an uphill battle in the Republican-controlled House, which also needs to pass the measure to send it to President Biden to sign into law.
US elections on the horizon in November could also further complicate any efforts to pass such a bill with the economy looming large in Biden’s re-election bid.
A representative for the US Chamber of Commerce, the US’s largest business lobby, did not immediately respond to a request for comment on the Tax-Excess CEO Pay Act, which was introduced last week.
Walmart, Alphabet’s Google, Home Depot, JPMorgan Chase, Nike and McDonald’s could all face millions more — in some cases billions more — in taxes, the group said. PhotographrIncognito – stock.adobe.com JPMorgan CEO Jamie Dimon Shutterstock
The measure would raise tax rates on companies whose CEO-to-employee pay ratio exceeds 50 to 1, starting with a 0.5 percentage point increase when top executives earn 50 to 100 times more than average company workers, according to the proposed legislation.
Companies that pay their top executives more than 500 times what the average worker makes will face a maximum tax penalty of 5 percentage points.
If the CEO does not receive the largest salary in the firm, the ratio will be based on the highest paid employee, the senators said. Data on CEO pay to employees for privately held companies will also be made public, they added.
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Source: thtrangdai.edu.vn/en/
